Economics Trumps Politics

With the decision to cancel the Mexican presidents visit to President Trump, the Mexican Peso dropped 12%, but settled down 8%. That is an enormous drop, and indicates the economic power of the US. If Mexico, our second largest trading partner gets on our bad side, their economy will tank. Mexico knows this, and resents it, but it is a fact of life in Mexico.
Mexico will pay for the wall. They may get a fig leaf to make them feel better, and to assuage their feelings, but they will pay.

Economics trumps politics.

On that subject. California, and various Sanctuary Cities intend to build War Chests to fight the federal government on immigration. Just one observation: The Federal Government can print money, and cities and states can’t. (Never get in a high stakes poker game with someone who has unlimited funds, as I heard growing up in Texas.) 

Economics trumps politics.

Game over

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One Response

  1. Allen,

    My Dad always said. “You can’t fight city hall.” I assume that extends to the White House too.

    As always, I hang on every word you write. I hope all is well in San Diego.

    rob

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